Shell Brasil announced today a R$ 200 million (USD$38 million) investment in forest preservation carbon credit project developer Carbonext, aimed at helping the company to protect, reforest and develop bioeconomy in the Amazon Forest.

The investment makes Shell Brasil a minority partner in Carbonext and marks Shell’s entry into the nature-based solutions business in the country.

Carbonext is the largest developer of Reducing Emissions from Deforestation and Degradation (REDD+) carbon credit generation projects in Brazil, preserving around 2 million hectares of the Amazon Rainforest. Its efforts generate carbon credits that the company sells to its clients. Carbonext has increased the area of preserved vegetation in the most vulnerable part of the Amazon Forest by 340% since 2021.

In a social media post commenting on the new partnership, Flora Ji Qin, Vice President – Nature Based Solutions at Shell, said:

“Fighting climate change is not an easy battle. Partnership makes it possible to go with scale and impact. Today marks the start of such an important step. Together with Carbonext, we are to do our part to stop deforestation in Amazon area, protect biodiversity and restore ecosystems. Kudos to all for making this partnership come true. Let’s take solid steps ahead to deliver more concrete actions and real impact.”

Proceeds from the investment will go toward helping Carbonext to develop new business areas, including bioeconomy and reforestation in the Amazon forest, and to invest in technology embedded in forest preservation products. Carbonext also plans to expand its team of forestry specialists capable of creating and managing projects to generate carbon credits.

Carbonext’s management will remain in the hands of its founding partners Janaína Dallan and Luciano Corrêa da Fonseca. Dallan and Corrêa da Fonesca, said:

“We are contributing to curb global warming, from the preservation of forests , and also for the essential discussions on the transition to a low carbon economy, such as the development of the bioeconomy. With the new partnership, the company will start to act with the most modern for the development and support for the management of forest areas where they operate, enabling operations on an unprecedented scale.”

Today’s announcement follows the launch of Shell’s “Powering Progress” strategy in 2021, which details how the company will achieve its target to be a net-zero energy business by 2050 across Scope 1, 2, and 3 emissions, including setting short-term and interim targets and investing in renewable and clean energy solutions.

André Araujo, President of Shell Brasil, said:

“Brazil, due to its location and biodiversity, is fundamental to our Powering Progress strategy, especially when we talk about respecting nature and boosting lives, in addition to achieving net zero emissions and generating value for shareholders. It is not today that Shell defends the creation and regulation of the carbon market. Associating our company with Carbonext is an important step towards our goal of offsetting 120 million tonnes of CO₂ per year by 2030 with nature-based solutions for Scope 3, which are emissions that are difficult to abate, in line with the mitigation hierarchy.”